Much has been made recently of the surprising lack of response on the part of bond markets to the massive sell-off in stocks.  That shoe is now on the other foot as bond markets remain little-changed despite the S&P being up 37 points. 

While the day is still fairly young, this is a resilient showing for bond markets so far--especially in light of the stronger-than-expected GDP (+3.7 vs +3.2 forecast).  There was definitely a reaction to the data at first, with bonds moving to the weakest levels of the day.  But 10yr yields are trying to establish a supportive ceiling around 2.20.  As long as yields don't go too much above that, today will end up marking the end of the nasty little correction back from Monday's lows.

If the aforementioned ceiling ends up holding today, we shouldn't be surprised if it doesn't look like that before 1pm.  That's when the week's last Treasury auction takes place, and simply being done with "supply" for the week could be a net benefit for bond markets.